For most Indians, buying a house is one of the biggest investments they make. Now with passing time and rapid development across various spheres of life, people look for locations that can help enhance their lifestyles. That being said, large cities with their unbridled growth and plethora of amenities seem to fit in perfectly with the preferences of modern homebuyers.
Chennai is a city that is the largest centre for culture, education and economy in South India. As one of the biggest metro cities in the nation, the city of Chennai fetches in a bunch of advantages that make it a highly preferred place for dwelling, both with the locals and the migrating crowd.
Chennai trumps other cities in the neighbourhood in terms of infrastructure, job opportunities, education and even entertainment. Furthermore, despite all the modern amenities that it houses Chennai is a city that still manages to stick to its cultural roots, which is something that only adds to its charm. The city thus offers just the right standards of living to modern homebuyers.
Chennai and Real Estate
To understand Chennai’s real estate, you first need to understand that it is a buyer’s market. The gradual growth of different IT/ITeS hubs and small-scale industries in the city, in addition to the establishment of varied new commercial units, has been greatly instrumental in shooting up the demand for residential properties in the city.
This, in turn, led to a rise in affordable properties in Chennai with numerous lucrative options in the form of plots, apartments, villas, independent houses and more available to homebuyers and investors to choose from. Key locations such as Tambaram, OMR, ECR, Thalambur, Karapakkam, Saidapet and so on, make for the best real estate investments in the city.
Over the past few years, the real estate in Chennai has been seen to integrate new trends with respect to properties for sale. In Chennai property buyers now have all kinds of advanced forms of community living options available to them, including modern township projects.
Issues Ailing Chennai’s Real Estate
Despite the city being one of the top realty markets in the country, Chennai has not been immune to the major setbacks faced by Indian real estate overall. Just when the city was trying to recover from the devastation caused by the flood of 2015, it was met with other challenges like demonetisation, the Real estate ACT (RERA) and GST, which greatly impacted its real estate market.
As per market experts, the factor that contributed to bringing about a delay in construction of real estate projects has been slow housing sales over the past couple of years, which in turn led to shrinking of funds with developers. Poor flow of funds is the major reason behind several skeletons of real estate projects across the city.
The scarcity of sand has also been noted to add greatly to delays in housing projects.
Will Property Rates in Chennai Fall?
New additions and changes brought about with respect to the real estate sector in the country, such as RERA, influenced the state of the sector across different cities, especially the big ones. Chennai happens to be one of those major cities facing slack demands and huge inventories of unsold properties in the residential segment.
As per a report by the real estate research firm Knight Frank, the city of Chennai experienced a fall of 3% in property prices, in the first quarter of the financial year 2019. And given the current state of the city
Market experts are further of the view that in the times to come, property rates in Chennai are unlikely to rise, which is actually good news for prospective homebuyers. So if you are someone wanting to buy a property in the city, this actually might be the best time for real estate investments.